Albertsons Companies (ACI) AI Stock Analysis

• Market Cap: $11.64B
• Dividend Yield: 2.78%
• Average Volume (3M): 6.29M
• Price to Earnings (P/E): 12.7
• Beta (1Y): 0.04
• Revenue Growth: 1.96%
• EPS Growth: -14.99%
• Country: US
• Employees: 108,300
• Sector: Consumer Defensive
• Sector Strength: 54
• Industry: Grocery Stores
• EPS (TTM): 0.55
• Shares Outstanding: 559,846,440
• 10 Day Avg. Volume: 8,254,987
• 30 Day Avg. Volume: 6,287,022
• PEG Ratio: -20.48
• Price to Book (P/B): 3.65
• Price to Sales (P/S): 0.00
• P/FCF Ratio: 15.35
• Enterprise Value/Market Cap: 2.20
• Enterprise Value/Revenue: 0.12
• Enterprise Value/Gross Profit: 2.34
• Enterprise Value/Ebitda: 3.34
• 1Y Price Target: $24.42
• Price Target Upside: 17.40% Upside
• Rating Consensus: Moderate Buy
• Number of Analyst Covering: 13

• Rating: 61 Neutral
• Price Target: $21.50 ▲(3.37%Upside)

Albertsons Companies' overall stock score is influenced by steady financial performance and attractive valuation metrics despite facing profitability challenges. Technical analysis points to bearish momentum, while earnings call insights provide a mixed outlook with strong digital growth but profitability hurdles. The company’s focus on strategic investments and shareholder returns adds a positive note to the overall assessment.

Positive Factors

Investments and Growth

ACI's investments and productivity initiatives are expected to begin driving higher growth and cost savings.

Valuation and Market Perception

ACI may see valuation expansion as investors seek inexpensive, defensive stocks, with an attractive risk/reward given low earnings expectations.

Negative Factors

Margin Pressure

Margin pressure is expected to continue due to investments in pharmacy, digital, wages, and customer experience.

Market Share and Competition

Market share spread to KR is widening, as ACI lost ~185 bps of share in Q1'25 compared to KR's gain of ~64 bps.

Albertsons Companies Business Overview & Revenue Model

Company Description

Albertsons Companies, Inc. (ACI) is one of the largest food and drug retailers in the United States. The company operates across multiple sectors, primarily focusing on retail grocery and pharmacy services. Through its various well-known banners, including Albertsons, Safeway, Vons, Jewel-Osco, Shaw's, and several others, the company offers a wide range of products such as groceries, fresh produce, and pharmacy services to its customers. With a strong presence in the retail sector, Albertsons Companies serves millions of customers across numerous store locations nationwide.

How the Company Makes Money

Albertsons Companies generates revenue through several key streams, primarily from the sale of groceries and pharmacy products. Its core revenue model is based on retail operations, where the company sells a wide array of products, including fresh produce, packaged foods, beverages, household goods, and health and beauty items. In addition to grocery sales, the company earns significant revenue from its in-store pharmacy services, which include prescription dispensing and health consultations. Albertsons also engages in strategic partnerships and loyalty programs, enhancing customer engagement and sales. The company's revenue model is supported by its extensive network of stores, robust supply chain, and strong brand recognition across its multiple banners.

Albertsons Companies Financial Statement Overview

Summary

Albertsons Companies demonstrates steady revenue growth and sound cash generation capabilities despite facing profitability challenges. The company's balance sheet reflects high leverage but shows signs of stabilization. Continued focus on improving operational efficiency and managing debt levels will be crucial for sustaining growth and enhancing shareholder value.

Income Statement

Albertsons shows a stable revenue growth with recent TTM revenue at $81.01 billion compared to $80.39 billion in the previous year, indicating a modest growth trajectory. However, net income has slightly declined, resulting in a net profit margin decrease. The gross profit margin remains healthy, but the decline in EBIT and EBITDA margins suggests rising operational costs affecting profitability.

Balance Sheet

The company maintains a high debt-to-equity ratio, reflecting significant leverage at a level typical for the grocery industry. Despite this, the equity ratio shows slight improvement, indicating some strengthening of financial stability. Return on equity has decreased due to lower net income, signaling challenges in generating returns for shareholders.

Cash Flow

Albertsons maintains a positive free cash flow, though it has decreased compared to previous periods. The operating cash flow to net income ratio signifies efficient cash generation relative to net income. However, the declining free cash flow growth rate suggests potential pressures on future cash availability for investments and debt servicing.

Breakdown	Dec 2024	Dec 2023	Dec 2022	Dec 2021	Dec 2020
Income Statement
Total Revenue	80.39B	79.24B	77.65B	71.89B	69.69B
Gross Profit	22.26B	22.05B	21.76B	20.72B	20.41B
EBITDA	4.08B	4.53B	4.85B	4.87B	3.78B
Net Income	958.60M	1.30B	1.51B	1.62B	850.20M
Balance Sheet
Total Assets	26.76B	26.22B	26.17B	28.12B	26.60B
Cash, Cash Equivalents and Short-Term Investments	293.60M	188.70M	455.80M	2.90B	1.72B
Total Debt	14.18B	14.24B	14.96B	14.03B	14.47B
Total Liabilities	23.37B	23.47B	24.56B	25.10B	25.27B
Stockholders Equity	3.39B	2.75B	1.61B	3.02B	1.32B
Cash Flow
Free Cash Flow	749.40M	628.20M	700.00M	1.91B	2.27B
Operating Cash Flow	2.68B	2.66B	2.85B	3.51B	3.90B
Investing Cash Flow	-1.89B	-1.75B	-1.98B	-1.54B	-1.57B
Financing Cash Flow	-684.10M	-1.18B	-3.37B	-789.50M	-1.04B

Albertsons Companies Technical Analysis

• Technical Analysis Sentiment: Negative
• Last Price: 20.80
• 50DMA: Negative
• 100DMA: Negative
• 200DMA: Positive
• MACD: Positive
• RSI: Neutral
• STOCH: Neutral

Evaluating momentum and price trends is crucial in stock analysis to make informed investment decisions. For ACI, the sentiment is Negative. The current price of 20.8 is below the 20-day moving average (MA) of 21.37, below the 50-day MA of 21.56, and above the 200-day MA of 20.38, indicating a neutral trend. The MACD of -0.32 indicates Positive momentum. The RSI at 41.48 is Neutral, neither overbought nor oversold. The STOCH value of 25.71 is Neutral, not indicating any strong overbought or oversold conditions. Overall, these indicators collectively point to a Negative sentiment for ACI.

Albertsons Companies Peers Comparison

Name	Overall Rating	Market Cap	P/E Ratio	ROE	Dividend Yield	Revenue Growth	EPS Growth
SFM	74 Outperform	$16.09B	37.01	35.74%	―	15.51%	53.77%
KR	73 Outperform	$48.19B	19.81	24.06%	1.77%	-2.11%	25.03%
WMK	69 Neutral	$2.07B	19.32	7.54%	1.77%	1.76%	6.01%
Sector *	65 Neutral	$27.20B	15.73	-4.29%	2.57%	1.03%	4.90%
IMKTA	65 Neutral	$1.23B	20.71	4.00%	1.00%	-7.79%	-64.85%
ACI	61 Neutral	$11.64B	12.68	31.10%	2.78%	1.96%	-14.99%
GO	58 Neutral	$1.37B	83.08	1.43%	―	10.37%	-73.84%

Albertsons Companies Corporate Events

Albertsons Companies Announces CEO Vivek Sankaran’s Retirement

Albertsons Companies announced the retirement of CEO Vivek Sankaran, effective May 1, 2025, with Susan Morris, the current Executive Vice President and Chief Operations Officer, set to succeed him. This transition is part of a comprehensive succession plan, with Morris bringing nearly 40 years of industry experience to the role, aiming to continue the company’s growth and strategic initiatives, including the ‘Customers for Life’ strategy.